Which endorsement in a Business Auto policy is designed to provide coverage for hired vehicles?

The Hired Auto Coverage endorsement is specifically designed to provide insurance for vehicles that a business rents or leases. This type of coverage is essential for businesses that may not own all the vehicles they use but still need to protect themselves against liabilities while operating hired vehicles.

When businesses need to rent a vehicle for temporary use, this coverage ensures that they are protected from risks such as accidents, damage to the vehicle, or liabilities arising from injuries to third parties. By including Hired Auto Coverage in their Business Auto policy, businesses can operate rented vehicles with the same peace of mind as their owned fleet, knowing they have the necessary coverage in case of an incident.

In contrast, the other options focus on different aspects of vehicle coverage. Drive Other Car Coverage relates to personal use of vehicles other than those owned by the insured. Non-owned Auto Coverage is about protection when using vehicles that the business does not own, but isn't specific to hired vehicles. Physical Damage Coverage addresses the damage to the vehicle itself, but does not specifically cover the liabilities associated with rented or hired vehicles. Thus, the specific designation of Hired Auto Coverage accurately reflects the intent to safeguard against liabilities incurred while operating leased or rented vehicles.